The great railway bazaar
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As Unlock 1.0 gets underway, automobile and tractor manufacturers are relying on trains to get the job done
Roads andrail tracks have always been the lifelines of economies. As the country gets back on track and resumes economic activity, it’s the railways that is once again at the forefront.
On Sunday, two rakes packed with 200 SUVs from Kia Motors were loaded on to trains leaving South Western Railways (SWR’s) Penukonda station of Bengaluru zone for Delhi’sFarooqnagar station .
Bengaluru business experts’ say it is commendable to see public infrastructure being utilized by manufacturers for logistics; and it is heartening to see green shoots of economic revival after over two months oflockdown .
SWR says besides cars and tractors, it is expecting orders to transport coal and steel soon. From the time the lockdown was relaxed, tractors, cars and granite have been sent through railways to different parts of the county which is working out to be cost-effective as well as time-saving. Cars which take about six to seven days to reach Delhi can now reach Delhi in two days, said Ajay Kumar Singh, General Manager,South Western Railway (SWR).
Auto orders will increase
According to Singh, “The automobile industry alone has sent 10 rakes this month which is a huge increase from the previous years. Including Kia Motors, we will be loading another 10 to 12 rakes in the coming days. Even in our best months, we have loaded only four rakes.”
Singh also said that they’re expecting more orders from TCI and Kia Motors has given an indication of using five more rakes. “Automobile loading is going to pick-up in the days to come,” said Singh.
During the lockdown, there were no orders as industries were closed. “We have been sending only passenger loads during the lockdown. The parcel trains were sent to Howrah, Delhi and Bihar. Essentials were always being sent during the lockdown. Fresh vegetables, mangoes are going in huge numbers and hatching eggs too. We are sending hatching eggs to Howrah, Bihar and Delhi and this has become the biggest commodity in the last few months. A consignment of pigs was sent to Nagaland,” said Singh.
Lockdown: Before and after
During the lockdown period, only 230 passenger trains were in service compared to 800 otherwise. “Goods train movement is also down by 30 per cent currently. Food grains and fertilisers were the major cargo. We have done twice the normal loading during the lockdown. Food grains like wheat, rice, pulses and fertilisers were sent. Free rations by many State governments were given and hence this comprised the highest loading over the last two months,” said Singh.
Steel and Coal is the next segment that the railways is expecting will be opened up. “When the industries start opening up, there will be a revival in electricity and the demand for steel will rise,” observed Singh.
Cars on rails
There was always a notion that the railways cannot transport huge cars. “Even now, only a small percentage of cars are sent through the Indian Railways and most are sent by road. We are leaders in moving coal, steel and iron ore. Total car transport is hardly two per cent (of the freight business). In the last two years, we are working on improving transport of cars. We did not have proper rakes for this and now we have New Modified Goods (NMG) rakes where one rake can take around 100-150 cars.”
The production of these NMG rakes has been done because they are expecting a rise in the transportation of cars. About 200 NMG rakes are in the pipeline.
“We also have BCACBM (high capacity railway wagons) which are bigger in size. In this rake we can carry about 270 cars. But car companies are finding it difficult to send so many numbers to the location of loading. So the automobile industry is insisting on NMG rakes,” he added.
Singh is hopeful that with many more relaxations, the economy will be revived. “For two months, everything was closed. This is not sustainable. The economy should be revived or there will be a huge loss in terms of jobs. The next 10 to 15 days look brighter because a lot of labour activities will be started. From June 8, a lot of businesses in the service sector will start - like restaurants, malls and shops. We need to definitely come out of this,” he added.
Business experts applaud move
On movement of goods through railways,Mohandas Pai , Chairman, Manipal Global Education, said, “It’s a good start. Now consumer confidence needs to increase to improve consumption and economic growth.”
Echoing his thoughts, Kris Gopalakrishnan, Chairman, Axilor Ventures, said, “We will have to learn to live with the virus. We need to restart economic activities taking into account safety of our employees. I am glad that public infrastructure is being utilized for logistics by our manufacturers.”
Roads and
On Sunday, two rakes packed with 200 SUVs from Kia Motors were loaded on to trains leaving South Western Railways (SWR’s) Penukonda station of Bengaluru zone for Delhi’s
Tractors from TAFE Ltd were loaded on to trains on Saturday to Gujarat and Rajasthan and one rake of granite was also loaded, which will eventually make its way to China.
Bengaluru business experts’ say it is commendable to see public infrastructure being utilized by manufacturers for logistics; and it is heartening to see green shoots of economic revival after over two months of
SWR says besides cars and tractors, it is expecting orders to transport coal and steel soon. From the time the lockdown was relaxed, tractors, cars and granite have been sent through railways to different parts of the county which is working out to be cost-effective as well as time-saving. Cars which take about six to seven days to reach Delhi can now reach Delhi in two days, said Ajay Kumar Singh, General Manager,
Auto orders will increase
According to Singh, “The automobile industry alone has sent 10 rakes this month which is a huge increase from the previous years. Including Kia Motors, we will be loading another 10 to 12 rakes in the coming days. Even in our best months, we have loaded only four rakes.”
.
Singh also said that they’re expecting more orders from TCI and Kia Motors has given an indication of using five more rakes. “Automobile loading is going to pick-up in the days to come,” said Singh.
During the lockdown, there were no orders as industries were closed. “We have been sending only passenger loads during the lockdown. The parcel trains were sent to Howrah, Delhi and Bihar. Essentials were always being sent during the lockdown. Fresh vegetables, mangoes are going in huge numbers and hatching eggs too. We are sending hatching eggs to Howrah, Bihar and Delhi and this has become the biggest commodity in the last few months. A consignment of pigs was sent to Nagaland,” said Singh.
Lockdown: Before and after
During the lockdown period, only 230 passenger trains were in service compared to 800 otherwise. “Goods train movement is also down by 30 per cent currently. Food grains and fertilisers were the major cargo. We have done twice the normal loading during the lockdown. Food grains like wheat, rice, pulses and fertilisers were sent. Free rations by many State governments were given and hence this comprised the highest loading over the last two months,” said Singh.
.
Steel and Coal is the next segment that the railways is expecting will be opened up. “When the industries start opening up, there will be a revival in electricity and the demand for steel will rise,” observed Singh.
Cars on rails
There was always a notion that the railways cannot transport huge cars. “Even now, only a small percentage of cars are sent through the Indian Railways and most are sent by road. We are leaders in moving coal, steel and iron ore. Total car transport is hardly two per cent (of the freight business). In the last two years, we are working on improving transport of cars. We did not have proper rakes for this and now we have New Modified Goods (NMG) rakes where one rake can take around 100-150 cars.”
The production of these NMG rakes has been done because they are expecting a rise in the transportation of cars. About 200 NMG rakes are in the pipeline.
“We also have BCACBM (high capacity railway wagons) which are bigger in size. In this rake we can carry about 270 cars. But car companies are finding it difficult to send so many numbers to the location of loading. So the automobile industry is insisting on NMG rakes,” he added.
The automobile industry alone has sent 10 rakes this month which is a huge increase from the previous years. Even in our best months, we have loaded only four rakes.
Singh is hopeful that with many more relaxations, the economy will be revived. “For two months, everything was closed. This is not sustainable. The economy should be revived or there will be a huge loss in terms of jobs. The next 10 to 15 days look brighter because a lot of labour activities will be started. From June 8, a lot of businesses in the service sector will start - like restaurants, malls and shops. We need to definitely come out of this,” he added.
Business experts applaud move
On movement of goods through railways,
Echoing his thoughts, Kris Gopalakrishnan, Chairman, Axilor Ventures, said, “We will have to learn to live with the virus. We need to restart economic activities taking into account safety of our employees. I am glad that public infrastructure is being utilized for logistics by our manufacturers.”
